Incentives

Residential Energy Incentives

Introduction

State and federal incentives, from tax credits to point-of-sale rebates, can be significant for homeowners!

Some programs can mix and match for additional savings. Massachusetts has some of the best renewable energy promotions in the country, plus, the recent federal Inflation Reduction Act has released hundreds of millions of dollars to renew existing programs and to fund new efforts, including rebate structures that aim to support lower income households, non-profit organizations, and municipalities. See the information below for incentives listed at the state and federal levels. Further below is a table with an overview of incentives by technology. This information is current as of July 2023.

Index

• MASSACHUSETTS RESIDENTIAL PROGRAMS
  • Mass Save Residential programs
  • Massachusetts Solar Savings
  • Massachusetts Electric Vehicles
• FEDERAL CLEAN ENERGY INCENTIVES and REBATES
  • Federal Residential Clean Energy Tax Credit
  • Federal HOMES Program (Homeowner Managing Energy Systems)
  • Federal High Efficiency Electric Home Rebate Act
  • Federal Electric Vehicle Discounts
  • Federal Tax Credit for New EVs

MASSACHUSETTS RESIDENTIAL PROGRAMS

Mass Save Programs

(everything related to heat pumps and energy efficiency, but you must be a traditional utility customer)

HEAT Loan 0% Interest for 7 years	Up to $50,000
Air Source Heat Pumps	Up to $15,000/whole home for income eligible
	$1,250 per ton/partial conversion up to $10,000
Ground Source Heat Pumps	Up to $15,000/whole home conversion
	Up to $25,000/whole home for income qualified
	$2,000 per ton/partial home up to $15,000
Heat Pump Water Heaters	$75 instant credit
Insulation (1-4 unit homes)	75–100% off the cost
Energy Star Windows	$75 off per window
Energy Efficient Appliances	$30–$500 off, depending on appliance

Massachusetts Solar Savings

Renewable Energy Tax Credit	Up to $1,000
SMART Program	Payments per kilowatt hour produced (depends on cohort availability)
Net Metering	Excess production results in substantial cumulative electric bill credits

Massachusetts Electric Vehicles

MOR-EV Program

$3,500 credit per car (under $55,000)

                                                       

FEDERAL CLEAN ENERGY INCENTIVES and REBATES

Federal Residential Clean Energy Tax Credit

(no caps or income limits.)

Solar Panels	30% tax credit for materials and installation
Solar Hot Water System	30% tax credit for materials and installation
Solar Battery Storage	30% tax credit for materials and installation
Ground Source (Geothermal) Heat Pumps	30% tax credit for materials and installation
Small-Scale Wind	30% tax credit for materials and installation

Federal Energy Efficient Home Improvement Tax Credit 

Air Source Heat Pumps	30% of cost up to $2,000 per year (materials/labor)
Electric Service Upgrades	30% of cost up to $2,000 (materials/ labor)
Heat Pump Water Heaters	30% of cost up to $600 when accompanying heat pump or solar installation
Insulation	Up to $1,500 per year (materials only, not labor)
Energy Star Windows	$600 credit per year (materials only, not labor)
Energy Star Doors	$250 per door up to $500 per year (materials only)
Home Energy Audit	$150 dollars off

                                                    

Federal HOMES Program (Homeowner Managing Energy Systems)

Cash back rebates (not dependent on tax liability) for reducing overall energy use through weatherization, insulation, and efficient appliances, such as induction stoves and heat pumps. Rebate amounts depend on energy savings and income level. Low- and moderate-income levels get extra incentives. The maximum amount is $8,000 per year depending on the amount of energy saved. These funds will be distributed through state energy offices; the federal government plans to release the funds to the states in late 2023. Stay tuned for more details when this money becomes available.

Federal High Efficiency Electric Home Rebate Act

This incentive is only for low- and moderate-income households for all electrification projects, from heat pumps to appliances. Point-of-sale discounts will be available up to $14,000 per year. This is another program in which the federal funds will be administered through the states; again, funds are not yet available. The hope is that the program will go into effect late in 2023.

Federal Electric Vehicle Discounts

            The federal EV tax credits are quite complicated due to new requirements in the Inflation Reduction Act that vehicles be assembled in the U.S., and that a percentage of battery ingredients be mined, and the batteries be produced in the U.S. — a percentage that will increase in each of the next few years. Below is the list of eligible vehicles for 2023, which will change over time as car manufacturers shift more production to the U.S. and as battery requirements ramp up. Some  dealerships whose vehicles were dropped from this year’s list are offering the federal discount on lease arrangements. If a lease might be acceptable to you, make sure to ask at the dealership. Please note that there is also an income cap for federal tax rebate eligibility on both used and new Electric Vehicles (adjusted gross income of  $150,000/joint or surviving spouse, $75,000/single, and $112,500/head of household).

EV Charger Tax Credit	30% of project cost up to $1,000
Used EVs from dealership	30% of cost up to $4,000

Federal Tax Credit for New EVs                    

2023 Eligible Vehicles
(list courtesy of the Green Energy Consumers Alliance)